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“We plan to double the volume of carriage”

24/06/11
The segment of transportation of petrochemical products in dedicated containers is gathering pace. The experts expect 40% growth during the current year. The development plans of “Spetstransgarant” (a member of Rail Garant Group), the segment’s major player are outlined below in the interview given to “Transport” by Aleksandr Fokin, the Company’s CEO.

Q: Mr. Fokin, the Company’s last year traffic exceeded 320 thousand tons. What is the forecast for the current year?

- I think that the growth for liquefied hydrocarbon gas (LHG) transportation will comprise some 20%, while the volume of carriage for petrochemical products can be doubled.

Q: Due to what?

- Due to putting into operation new containers. We purchase and use not only gas, but chemical containers also.

Our immediate goal is to double the fleet of containers used for the transportation of liquefied chemical products. Initially we planned to do so by the end of the current year, but judging by the momentum we gained, this stage will be accomplished in July-August, resulting in the total tank container fleet in excess of 2 thousand. A year ago the share of gas tank containers comprised 65% of the Company’s total container fleet, but now their shares will become equal. Once doubled, the fleet should achieve 3 – 3.3 thousand containers by the year end and this is our ultimate goal.

However, judging by the production capacity of tank manufacturers, our ultimate goal is hard to achieve in the near future.

Q: Did the decision of the Federal Tariff Service concerning the assimilation of dedicated containers to the universal ones produce any impact on the carriage demand?

- No. Moreover, I’d like to say that during 4 years that I work in the industry I didn’t notice any rush to use containers. All we did and still do is a great effort of a group of like-minded persons. To enable a facility to handle tank containers the existing loading ramps have to be renovated. To accomplish this we established a special division of the engineering service, which is engaged in adapting the existing loading ramps so as to make them suitable for handling tank containers. I’d like to emphasize here that the cost of such renovation hardly exceeds 10-15 thousand rubles, by any standard a very affordable sum for any large-scale enterprise. Therefore the lack of enthusiasm shown by consignors/consignees towards tank containers is based not on the cost of renovation, but on their long-standing commitment to old ways and schemes. Any novelty is resisted at first, to be implemented only much later, or in the result of dedicated effort. We are perfectly aware of that, but nonetheless are ready to further develop transportation in tank containers, as this type of carriage is very promising. Our marketing research, the rapidly ageing fleet of cisterns for the transportation of chemical goods and our strategic partners (meaning the companies with which we have long-term contracts with fixed carriage volumes) make us confident that tank containers are capable of competing with traditional cisterns, especially in transporting cargoes to hard-to-reach areas where no railway infrastructure is available.

Q: The Company’s fleet is growing. Would you comment on the key transportation routes of petrochemical goods (and your customers) – which of them is likely to necessitate the purchase of new containers?

- The things are rather complex when it comes to geography. One and the same customer may order transportation along different routes. The issues agreed with consignors usually include monthly transportation volumes and rates, whereas the routes may vary.

Q: Can you list specific projects that will require an increase in the number of gas tank containers, announced after the recent TransRussia? And who will be the manufacturer of these containers?

- We’ve been purchasing tank containers manufactured by the Kuzbass branch of JSC “Altaivagon” for a number of years in a row. As the facility lags behind our schedule a little, we plan to purchase several dozens from Uralkryomash. Nearly all of them will be used for the transportation of LHG from “Nyagangazpererabotka” plant – a project the Company implements jointly with “SIBUR-Trans”.

Q: The Company operates nearly 1 thousand fitting platforms. How many of them are owned by the Company and do you plan to increase the number?

- The platforms are owned by Rail Garant Group, not the Company. The number of third-party platforms comprises not more than 7-10%.

Q: Is there any progress with the project of constructing the Company’s own container depot?

- Things are not moving as fast as we expected, for there remain some organizational problems to be solved. Presently we are considering a possibility to construct our container depot in Nizhny Novgorod Region. Under review is a territory of some 10 ha in area, with an industrial building which can be quickly adapted to our needs. The first stage of the project will involve the organization of washing/steaming of tank containers, whereas the second stage will include the equipment of the depot with the facilities required for the performance of scheduled and current repairs, and the construction of the container yard. We plan to use the depot not only for cleaning and repair of the Company’s tank containers, but also for the rendering of similar services to third parties, including those operating motor and railway cisterns.

Q: Infrastructural projects are rather costly. Are you sure the depot project will pay back?

- We consider the project to be very challenging and pressing not only for the Company, as there are no similar depots in the country. The transportation in tank containers is comparatively new, but promising segment of the Russian carriage logistics. The segment will continue to develop, dropping off technological and organizational imperfections which prevent the volume of carriage from growing. The cancellation of the tariff for the transportation of tank containers is only the first step. This makes us confident that containerized transportation will gain pace in the years to come, as it is the business of the 21st century.